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Wonder how would this affect the price movements, any master comments?
I suppose we will see a slower price movements there by limiting the amount a trader will lose/ gain....
SGX will revamp the size of share trading bid intervals with effect from 24 December 2007. The new schedule seeks to improve trading efficiency and market liquidity. The bid-ask spread of securities is expected to be narrower and investors will find that the minute-by-minute share price movements smaller than before.
Revised Minimum Bids Schedule:
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Products
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Price Range
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Revised Bid Size ($)
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Forced Orders (Bids)
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Securities^
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Below $1
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0.005 (no change)
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+/- 10
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$1 - $2.99
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0.01 (no change)
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$3 - $9.99
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0.01
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$10 and above
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0.02
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Exchange Traded Funds
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All
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0.01 or 0.001 as determined by SGX-ST*
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+/- 30
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Bonds, debentures, loan stocks
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All
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0.001
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+/- 30
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